Correlation Between Kandi Technologies and JOHNSON
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By analyzing existing cross correlation between Kandi Technologies Group and JOHNSON JOHNSON 485, you can compare the effects of market volatilities on Kandi Technologies and JOHNSON and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kandi Technologies with a short position of JOHNSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandi Technologies and JOHNSON.
Diversification Opportunities for Kandi Technologies and JOHNSON
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kandi and JOHNSON is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kandi Technologies Group and JOHNSON JOHNSON 485 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHNSON JOHNSON 485 and Kandi Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kandi Technologies Group are associated (or correlated) with JOHNSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHNSON JOHNSON 485 has no effect on the direction of Kandi Technologies i.e., Kandi Technologies and JOHNSON go up and down completely randomly.
Pair Corralation between Kandi Technologies and JOHNSON
Given the investment horizon of 90 days Kandi Technologies Group is expected to under-perform the JOHNSON. In addition to that, Kandi Technologies is 1.68 times more volatile than JOHNSON JOHNSON 485. It trades about -0.05 of its total potential returns per unit of risk. JOHNSON JOHNSON 485 is currently generating about 0.0 per unit of volatility. If you would invest 10,512 in JOHNSON JOHNSON 485 on September 3, 2024 and sell it today you would lose (587.00) from holding JOHNSON JOHNSON 485 or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.53% |
| Values | Daily Returns |
Kandi Technologies Group vs. JOHNSON JOHNSON 485
Performance |
| Timeline |
| Kandi Technologies |
| JOHNSON JOHNSON 485 |
Kandi Technologies and JOHNSON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandi Technologies and JOHNSON
The main advantage of trading using opposite Kandi Technologies and JOHNSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandi Technologies position performs unexpectedly, JOHNSON can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JOHNSON will offset losses from the drop in JOHNSON's long position.| Kandi Technologies vs. Hyliion Holdings Corp | Kandi Technologies vs. Foresight Autonomous Holdings | Kandi Technologies vs. Aeva Technologies | Kandi Technologies vs. Aeye Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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